Income Protection

By being a member of the Telefónica Pension Plan you don't just benefit from additional employer contributions and tax advantages, you can also benefit from our Income Protection scheme.

The Telefónica Income Protection scheme was set up in March 2013 to provide further sick pay for those employees who have exhausted their 12 months of Telefónica sick pay (across a rolling 4 year period, subject to the insurer’s requirements for a linked claim).

To be eligible for Income Protection you need to be an active (paying contributions) member of the Telefónica UK Pension Plan. You must not have opted out of the Plan at any point. If you have opted-out you will lose the ability to apply for any Income Protection benefit in future, regardless of what section of the Plan you're in or whether you re-join the plan in future. You're also likely to lose at dependant benefit entitlement and receive reduced Life Assurance cover. Please see the section on our website titled 'impact on your benefits if you stop contributing' for more details.

You also need to have been ‘actively’ at work on the day you joined the Pension Plan (e.g. not on sick leave).

You need to have already received at least 12 months of Telefónica sick pay (across a rolling 4 year period) and it doesn't look like there’s any possibility of you returning to work.

You must satisfy the insurers' definition of ‘Incapacity’ for the claim to be accepted (see below).

What's the definition of Incapacity?

As this is an insured benefit there will be an assessment carried out by our insurer (Unum). Our insurer will ask you for access to your medical records, occupational health reports and maybe an assessment either face-to-face or over the phone.

Unum will decide if you are classed as incapacitated. This may depend on:

(a) If you are unable, by reason of your illness or injury, to perform the material and substantial duties of their insured occupation, and:

(b) If you are not able to perform any other occupation for remuneration or reward.

If the application is accepted you would receive 50% of your basic pay for a maximum of two years. This would be paid by our insurer (Unum). Occasionally the benefit is limited but you will be told if this applies to you.

The overall benefit maximum/ limit wouldn't increase throughout the period and the amount paid will not exceed £350,000 per annum (p.a). Benefits in excess of £150,000 p.a. up to the maximum stated above would be subject to you satisfactorily completing Unum’s medical underwriting requirements.

If at the end of 2 years you still meet the incapacity criteria, Unum may make a payment of 1x your basic salary lump sum. After this payment is made, the benefits would cease.

If you have any further questions on the Income Protection scheme please contact EPSC on 0800 731 2638 or Email: EPSC@O2.com